Oil prices inched higher on Tuesday amid expectations that OPEC and its allies will keep production cuts in place for a longer period.
Benchmark Brent crude for August delivery rose 0.3 percent to $62.47 per barrel while U.S. West Texas Intermediate (WTI) crude futures were up 0.9 percent at $53.73 per barrel.
OPEC is currently scheduled to meet in Vienna on June 25 to decide output policy for the rest of the year. With the current output deal expiring in June, it is likely that the OPEC will extend the production cut till end of the year.
Oil prices also remain supported by hopes of more stimulus for China’s slowing economy.
Equity markets across Asia and Europe rose broadly today despite U.S. President Donald Trump threatening to slap huge new tariffs on China if his counterpart Xi Jinping doesn’t attend the upcoming G20 meeting.
Sentiment was bolstered after Beijing said it would allow local governments to use proceeds from special bonds as capital for major projects including highways, gas and power supply and railways.
The material has been provided by InstaForex Company – www.instaforex.com